FAQ on section 80D of Income Tax Act

1. When can deduction be claimed u/s 80D of Income tax Act?

Deduction u/s 80D of Income tax Act can be claimed on payment of medical insurance premium.

2. Which assessees are eligible for deduction?

Deduction can be claimed only by individual and HUF.

3. Can an individual pay medical insurance premium for spouse and claim deduction?

Yes.

 An individual can claim deduction in respect of premium paid to keep in force insurance on the health of self, spouse, dependent children and parents.

4. So, deduction can not be claimed if medical premium is paid for Grand Father?

Yes, deduction can not be claimed if payment is made for insurance taken on health of Grand Father.

5. How can HUF claim deduction?

HUF can claim deduction if it pays medical premium for insurance taken on health of any of its member.

6. What about preventive health checkup?

U/s 80D deduction can also be claimed in respect of payment made for preventive health checkup upto Rs 5,000/-

7. What is the limit of deduction u/s 80D?

For AY 2017-18 -

Individual can claim deduction of upto Rs 25,000/- for payment of medical insurance premium for self, spouse and dependent children. And, HUF can claim deduction of upto Rs 25,000/- for payment of medical insurance premium for any of its members.

An individual can claim addition deduction of Rs 25000 if he pays medical premium for his parents

However deduction upto Rs 30,000/- can be claimed if any of them are senior citizens.

7. I paid medical insurance premium and preventive health checkup fees in cash, will I get deduction?

Medical insurance premium can be paid in any mode other than cash. So, deduction can not be claimed if it is paid in cash.

However payment for preventive health checkup can be made in cash.

Author
Posted by CA Ankit Sharma under Income-Tax

I am practicing CA, you can contact me for resolving all your tax queries. Reach me at ankitsharma1141@gmail.comContact



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